In recent years, there has been a significant shift in the trend of estate planning among younger generations, particularly Gen-Z and millennials, who may not consider themselves wealthy. Matt Watson, CEO of Origin Financial, highlighted that there are two primary barriers deterring younger individuals from creating estate plans: lack of understanding of the consequences of not having one and the absence of a cost-effective and simple method to create one. However, a growing number of young people are realizing the importance of estate planning, with 45% of planning sessions among Origin’s millennial and Gen-Z members resulting in the creation of an estate plan.
Several factors are driving this surge in estate planning among younger demographics, including the possession of significant digital assets, heightened health awareness due to the COVID-19 pandemic, evolving family dynamics, philanthropic desires, and financial prudence. By proactively creating an estate plan, individuals can ensure that their assets are distributed according to their wishes, avoid probate, make provisions for their care and finances in case of incapacity, minimize family conflict, and secure their digital legacy. These are all critical aspects that need to be considered for effective estate planning.
A study in 2021 revealed that the lack of financial literacy cost Americans an estimated $352 billion that year alone. Basic mistakes, such as not having a trust in place, can have significant consequences, highlighting the importance of estate planning. With Gen-Zs taking proactive steps in creating estate plans, there is hope for a prosperous future ahead. By democratizing the process of estate planning through innovative solutions like an “estate plan” document creation feature within financial management apps, individuals can easily create legally-binding plans to protect their assets and ensure their wishes are respected.
Estate planning is not just for the affluent; it is essential for everyone, as Certified Financial Planners agree. Companies like Origin Financial are making it possible for everyone to access crucial tools for estate planning, emphasizing the importance of democratizing access to such services. The movement among younger generations to embrace estate planning showcases a broader understanding of its value beyond asset distribution, highlighting the need for proactive planning to protect one’s legacy and ensure peace of mind for oneself and loved ones. With advancements in technology making it easier than ever to create an estate plan, there is no reason to delay in setting up your own plan for the future.
